State and local taxes are constantly changing and evolving, and Income/Franchise taxes are no exception. States are motivated to constantly manipulate their tax base, apportionment formulas, nexus standards, and filing requirements for a variety of reasons including both the need to increase revenues as well as attract business. The professionals at MCM can help you both navigate these complexities and keep abreast of the changes through the use of the following services:
In a nexus review, our professionals will work to determine in what states or localities you have a legal filing requirement. We make this determination through the use of several methods, including but not limited to interviewing relevant personnel and reviewing your current business operations. If we determine the company should be filing additional state income/franchise tax returns, we can help to reduce your exposure through the use of Voluntary Disclosure Agreements (VDAs). Alternatively, we may be able to make suggested changes to your operations that would allow the company to avoid filing.
Credits and Incentives
Credits and incentives help to shape a state’s overall tax policy and encourage business investment within its borders. As companies expand and grow their operations, potential exists to overlook credits, incentives, and other state economic benefits they may be entitled to. Depending on your specific facts and circumstances, our state and local tax professionals can help research and secure applicable credits and incentives. If your business is considering expanding or relocating, or are considering an investment in the hiring and training of new employees, call on the professionals at MCM for help.
State Tax Reduction Studies
Companies operating across state lines can often benefit from the various differences in how states calculate taxable income. The goal of a state tax reduction study is to reduce you company’s overall state and local tax burden through apportionment planning and other methods. Our state and local tax professionals can your current state and local tax return filings and recommend workable strategies that achieve the goal of overall lower tax burden while not unduly burdening your current operations.
Audit / Tax Controversy Assistance
Our professionals have represented clients in many audits in most states. By getting us involved, we can help your company navigate and manage the audit process with the goal of achieving the best results possible. After the audit, should disagreements with the state exist, we can help to mitigate exposure through the appeals process.
Tax Accounting Services
Our company can help support your financial accounting efforts by providing provision assistance including FIN 48 reviews as they pertain to income tax positions held by your business.
If you have any questions regarding your income/franchise tax liability, contact Tax Partner Byron Largen, CPA.